Irish teenagers as young as 15 being used as money mules

The majority of accounts being used to transfer criminally-obtained funds belong to people aged 18 to 24.

Teenagers as young as 15 are allowing their bank accounts to be used for the transfer of criminally-obtained funds, according to a new study.

The FraudSMART report found that more than 2,600 mule accounts have been identified in Irish banks in the first half of this year, enabling the transfer of close to €17.5m — up by almost 50% on the same period last year. 

The majority of the accounts being used belong to young people between the ages of 18 and 24 years of age.

The average amount of money being moved through such accounts is around €10,000, according to the report.

Last month, gardaí revealed that 34 people were arrested in Ireland between May 15 and May 29 as part of an Interpol operation targeting the West African crime syndicate Black Axe. The syndicate is suspected of using a network of up to 4,000 money mules to launder the proceeds of its crimes.

A warning is now being made to students to be wary and a social media campaign, #DontBeAMule, has been launched by FraudSMART, supported by Further and Higher Education Minister Simon Harris and the Union of Students Ireland.

“While people of any age are susceptible to becoming a money mule, our members have observed that the majority of money-mule bank accounts belong to those aged between 18 and 24 years of age," said Niamh Davenport, BPFI head of financial crime.

Criminals frequently target young adults, usually recruiting them through social media ads and messages, but they are also known to approach young people in person outside schools, colleges, or sports clubs. 

"The money transferred by money mules are proceeds of crime, often stolen from innocent victims of text message scams and other types of fraud that our own friends and family can fall victim to.

BPFI head of financial crime Niamh Davenport said money mules transfer the proceeds of crime, often stolen from innocent victims of text message scams. Picture: Shane O’Neill/Coalesce

"Not only that, but the money being laundered is often used by criminals to facilitate other serious crimes such as terrorism, drug trafficking, and people smuggling.

"This is why the consequences faced for money muling are so serious and can result in a criminal record.” 

Colette Murphy, USI vice president for welfare, warned that students who agree to have their accounts used for muling run the risk of having travel plans affected, or loan possibilities hampered. 

“We want to make sure students are aware of the risks of being coerced, conned, or tempted into working with fraudsters through social media posts or seemingly legitimate job adverts," she said.

"Getting caught up in money mulling can have a long-term impact on your future. It could affect your ability to get loans or to travel to many places, including to Australia or on a J1.” 

In May, a 19-year-old man, Kenoly Ugbodu, who allowed €91,000 through his bank account was given a two-year suspended jail term at Cork Circuit Criminal Court. He had pleaded guilty to a charge of money-laundering by having €91,000 cash in his account in September 2017.

Young people are being advised to be wary of any unsolicited emails or approaches regarding making easy money, and to research any work-from-home opportunities to ensure they are legitimate.